IDEX Corporation (IEX)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 86.01 | 100.11 | 87.77 | 86.04 | 84.07 | 88.60 | 95.80 | 100.38 | 97.94 | 98.30 | 101.25 | 98.40 | 87.77 | 86.97 | 92.91 | 81.69 | 79.91 | 83.77 | 89.15 | 91.83 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 86.01 | 100.11 | 87.77 | 86.04 | 84.07 | 88.60 | 95.80 | 100.38 | 97.94 | 98.30 | 101.25 | 98.40 | 87.77 | 86.97 | 92.91 | 81.69 | 79.91 | 83.77 | 89.15 | 91.83 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 86.01 + — – —
= 86.01
The cash conversion cycle of IDEX Corporation has fluctuated over the period from March 31, 2020, to December 31, 2024. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
The trend analysis reveals that from March 31, 2020, to December 31, 2024, the cash conversion cycle varied between 79.91 days to 101.25 days. A declining trend in the cash conversion cycle indicates an improvement in the company's efficiency in managing its working capital.
Generally, a shorter cash conversion cycle is favorable as it implies the company is efficiently managing its inventory, accounts receivable, and accounts payable. It shows that the company is able to collect cash from sales faster and convert its investments back into cash more quickly.
It is important for IDEX Corporation to continuously monitor and manage its cash conversion cycle to ensure optimal utilization of resources and maintain liquidity. Analyzing the components of the cash conversion cycle, such as inventory turnover, accounts receivable collection period, and accounts payable payment period, can provide insights into areas for improvement in working capital management.
Peer comparison
Dec 31, 2024